US President George W. Bush has proposed a $3 billion aid package to Pakistan for its help in the US-led war on terrorism, but did not offer the fighter jets long sought by Islamabad.
"Greater economic development is ... critical to fulfilling the hopes of the Pakistani people," Mr Bush told a news conference with Pakistani President Pervez Musharraf at Camp David.
In their private talks, Mr Bush put pressure on Mr Musharraf to move toward democracy and stop militant extremists from launching attacks on neighbouring Afghanistan from Pakistan, a senior US official said.
Mr Musharraf said al Qaeda leader Osama bin Laden may be moving between Afghanistan and Pakistan in a "treacherous" border area.
Mr Bush said the leadership of al Qaeda was being dismantled slowly but surely. "It could take a day, or it could take a month, it could take years."
Mr Bush also pressured Mr Musharraf to halt any Pakistani proliferation of nuclear or missile technology to North Korea or elsewhere. Mr Musharraf pledged to do nothing that would cause Washington concern, the US official said.
Bush stopped short of giving Mr Musharraf everything he asked for.
He said he would work with the US Congress on a five-year, $3 billion assistance package "to help advance security and economic opportunity for Pakistan's citizens." Half that money would be used for defence equipment and security.
Mr Bush said Mr Musharraf's vision of progress at home would "require movement toward democracy in Pakistan."
Amid concerns at home that he might dissolve the Pakistani parliament, Mr Musharraf defended his approach to governing.
He said that over the past 50 years "we have had dysfunctional democracy in Pakistan. And what I am doing, really, is to introduce sustainable democracy."